Dr. Phil's TV network files for bankruptcy, sues Christian broadcaster alleging breach of contract
Dr. Phil McGraw's company is facing financial troubles.
Merit Street Media, the cable network founded by the TV personality, filed for Chapter 11 bankruptcy in a Texas court on Wednesday. Merit Street also filed a lawsuit against its distribution partner, the Christian broadcasting corporation Trinity Broadcasting Network (TBN), alleging that TBN breached the companies' contract and subsequently cost Merit Street over $100 million.
Representatives for Merit Street and Trinity Broadcasting Network did not immediately respond to Entertainment Weekly's request for comment.
AdvertisementAdvertisement#«Rkekkr8lb2m7nfddbH1» iframe AdvertisementAdvertisement#«R14ekkr8lb2m7nfddbH1» iframeThe complaint, which has been reviewed by EW, outlines how McGraw formed Merit Street as a joint venture between his other company, Peteski Productions, and TBN. The complaint
claims that in 2023, McGraw left his daytime series, Dr. Phil, after 21 years of producing the show in Los Angeles in order to collaborate with TBN in Texas and bring the show to primetime — only to discover that his new partners would not honor the terms of their agreement.
The complaint alleges that Peteski footed numerous bills for services that should have been provided by Trinity for free — most notably the distribution of Merit Street's programming onto numerous networks that TBN owns across the United States. The complaint claims that Trinity's refusal to distribute Merit Street's programming cost the McGraw's network $96 million in distribution fees alone, not to mention the personnel, insurance, and production services that TBN supposedly stated it would cover.
The complaint argues that TBN's "failures" were "a conscious, intentional pattern of choices made with full awareness that the consequence of which was to sabotage and seal the fate" of Merit Street.
Jamie McCarthy/Getty
Dr. Phil at SiriusXM Studios in New York City on Feb. 27, 2024The complaint also alleges that TBN provided "comically dysfunctional" production services, including teleprompters that blacked out during live broadcasts, a shoddy mobile app, downgraded editing software, and an insufficient control room "operating out of a truck." According to the complaint, the conditions were so dire, Merit Street's staff couldn't make phone calls inside the studio.
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Merit Street is seeking an unspecified amount of damages, plus attorneys' fees.
AdvertisementAdvertisement#«Rtekkr8lb2m7nfddbH1» iframe AdvertisementAdvertisement#«R1dekkr8lb2m7nfddbH1» iframeMerit Street Media was founded just over a year ago, officially launching in April 2024. The network also produces shows like Through the Drama with Chris & Lauren, Steve Harvey, and The Island with Bear Grylls.
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